Business Reporter
Chinese chrome smelting company, Afrochine’s Selous smelting plant is failing to reach full production capacity due to feedstock shortages, the company has said. The company is considering increasing production following the recent lifting of a ban on chrome ore exports by Government.
The Selous smelter has a requirement of 15 000 tonnes of chrome per month but is currently receiving about 2 000-3 000 tonnes of chrome mainly from small-scale producers.
Afrochine representative in Zimbabwe Mr Benson Xu Kemin told The Herald Business yesterday that the company has not yet made a decision on increasing capacity despite the lifting the ban on chrome ore exports.
He said the company is not receiving enough feedstock to reach full capacity.
“We welcome the lifting of the ban on chrome ore exports but we are still not quite sure of whether we are going to increase capacity or not considering that we are also facing feedstock shortages.
“We have been getting some of our feedstock from small-scale producers but still they can’t produce enough to meet our needs,” said Mr Kemin.
Afrochine private limited is a subsidiary of Tsingshan Iron and Steel Group of China, the second largest stainless steel producer in that country.
Last year, the chrome smelting company commissioned its $25 million smelting plant as phase one and the completion of the phase two project will see the company extending its tentacles in the local chrome smelting industry.
The company is courting external financiers to raise $100 million required for the setting up of more smelters at the Selous chrome smelting plant.
The new smelters are part of phase two of the company’s chrome smelting projects in the country.
Phase two of the project is still awaiting funding and the phase two is in line with the company’s aim to become the biggest chrome player in the country.
Afrochine also plans start refurbishments and upgrading of the country’s dilapidated rail network at a time when Zimbabwe is failing to raise about $4 billion required for the complete revamp of the rail network.
Mr Kemin said Afrochine has not yet received approval from Government to start railway line rehabilitation.
In line with its developmental strategy Afrochine also plans to set up a multi-million dollar electricity generation plant set to alleviate power deficit likely to affect the operations of the stand steel plant.
The electricity generating plant will have the capacity to generate 600 to 1 000 megawatts.